The IMF believes that if any cryptocurrency becomes a national currency, there will be negative consequences that will affect the financial market.
Tobias Adrian, Financial Advisor and Director of the IMF Marketing Department, commented on the situation in El Salvador. In his opinion. Bitcoin can only gain popularity in countries where there is no stable inflation, as well as where currencies are constantly changing. People will be able to get funds to earn money, but these people do not have bank accounts.
General Counsel and Director of the Legal Department Rhoda Weeks-Brown believes that prices will become volatile in these countries, and Bitcoin will also be used for money laundering and terrorist financing. In addition, there will be harm to the environment and macroeconomics.
“If goods and services were valued both in real currency and in cryptoassets, households and businesses would spend significant time and resources choosing money rather than engaging in productive activities.” cryptoassets, while costs will remain mostly in local currency, or vice versa, ”said the IMF staff.
They also believe that the adoption of the law on cryptocurrency as legal payment will reduce the credibility of the country. Bitcoin’s constant fluctuation scares people.
The IMF blog has no words about El Salvador, but we can see a direct hint. Adriant and X-Brown are concerned about the environment, although the President of El Salvador has assured that the country will use the abundance of geothermal energy.
The IMF has previously expressed dissatisfaction with the adoption of cryptocurrency as legal payment in the Marshall Islands. In their opinion, the island’s economy will suffer from the digital currency.